Market Reaction to Fiscal Cliff Stalemate

On Markets Hub, Steven Russolillo looks at U.S. and global markets along with how traders' confidence is affected by the turmoil in Washington. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... on Monday ... all ... the president told me that ... you ... know ... one point three trillion dollars in new revenues a fifty billion dollars in spending ... was as possible ... that he couldn't go a different ... kind of so we we we see a situation where ... were ... because of the political divide in the country ... because of the divide your Washington ... trying to bridge these differences ... has been typical ... Speaker John painter just a few minutes go ahead here it sounds like that that last mile between the two parties is that right now that is unreachable ... for the first time in at least a month ... the stock market having to look at a situation where ... maybe we do go over the fiscal cliff how they're reacting to it Steve Russolillo might compete read ... on the market the plot ... you have completely rewrite your morning cause ... dollar guiding a while yet completely rewrite it where the market stand right now yes the Dow's about a hundred points I lesson checked and I it's interesting because you see on time you saw that in the futures overnight there was a much sharper reaction to this news healed right with the news hit that only got all the options are gone for Christmas there's gonna be no deal has been a lap solid look horrible cabbages were down two hundred the market opened today though I knew did not see as sharp overreaction in so ... maybe a few things in some sense that people are maybe expecting this to happen they're expecting negotiations could go down for the very last minute and so maybe that's why you not seen such a sharp reaction ... of but still though ... still down a hundred points of the still down there and I don't discount that ... and doubt we'll see going for but you know we've seen the traditional safe haven plays like the dollar like Treasury bonds ... are up today ... of gold is actually not really having much of a move which isn't that surprising because gold is that depicts all over the last few weeks even think that Goldman so they can write securing the firm has been an anchor ... in the Stock Market annoy seems like when they had an entire overnight to digest the news ... they conduct with Ray Rice has agreed a move overnight ... and the players think about a minute but time Trading comes that kind of got into their system ... where is this how insane right now ... yes the live preview much worse reaction in the market ... D ... I mean that's a great point and I don't know I knew right because you have a little that I've that they just that that think about it and ... kill there still is time to their source ten days to go before ... of the actual clip comes about so we sold some time even though these as a go on vacation are still still to be a lot of talking to so to me on the negotiations back and forth both in the public eye in both and in in private seen so ... I can still a lot of moving parts to go before an actual decision is made whether we actually go over the cliff or not so I think that's part of the reason why ... they did assault isn't as severe as potentially could've been released were hearing my right so that the markets he says in the market that they're going to do some pain ... is still kind of integrity I didn't also ironic right ... if the market fell five or six hundred points today ... that would be the kind of thing that you would think would get Congress's can't exactly say that two things at play here one is that that that doing so that if there was a big selloff ... it would really make these guys think twice if they all got me yet so I need to do something at the same time the use of a lot of voices in the marker right now they're saying ... buy the dips by the time but as any sort of decline here ... is this a buying opportunity to ... arate Steve Russolillo thank you very much obviously ... will be on the market all they stay on WS J dot com and at least reliable be here all day talking about it ...